Boeing [NYSE: BA] and the Royal Netherlands Air Force (RNLAF) have signed the first-ever integrated contract for maintenance and spare parts for Chinook and Apache helicopters, which will save the Dutch military money and increase aircraft availability by merging two formerly separate supply chains.
The $60 million Integrated Contractor Logistics Support (ICLS) contract will provide support in the Netherlands and at Ft. Hood, Texas, where Dutch Chinook and Apache air crews train with the U.S. Army. The agreement – the first of its kind with any of Boeing's rotorcraft customers – is based on the number of expected flight hours rather than ordering and stocking parts.
"This partnership will help both parties for years to come," said John Guasto, director of Boeing International Rotorcraft Support. "The Boeing and RNLAF teams worked tirelessly to develop and refine this program to reduce costs and improve reliability."
The program will increase flight-hour readiness for the Air Force and underscores the excellent working relationship between Boeing and the Dutch armed forces.
"The Boeing and RNLAF teams have partnered to create an innovative and integrated program approach which is the first of its type globally for Boeing Rotorcraft," said Peri Widener, Global Services & Support vice president of Rotorcraft Support. "This will result in more affordable support solutions and enhanced flight hour readiness of Royal Netherlands Air Force CH-47 Chinook and AH-64D Apache helicopters.
“This agreement underscores our mutual commitment to a capable force for decades to come," Lieutenant General Alexander Schnitger, Commander of the Royal Netherlands Air Force, said. "This contract is not just a support contract. It is a long term partnership between Boeing and the Royal Netherlands Air Force which will increase the availability of our CH-47 Chinook and AH-64 Apache helicopters at lower costs. I am very pleased that the Dutch industry is also part of this initiative that enables industry to enhance their maintenance, repair and overhaul capabilities in the Netherlands."
Boeing is continuing to expand its support of the Dutch aerospace industry with the signing of a Memorandum of Understanding with AAR Aircraft Component Services to potentially provide maintenance, repair and overhaul services. AAR has extensive expertise servicing aircraft components for air forces in Europe, the United States and other countries. Along with Boeing, the strengths and experience AAR brings will help ensure improved and affordable readiness for the RNLAF fleet.
Source: The Boeing Company (NYSE: BA)
Date: Jun 17, 2013